In the U.S. economy, the circular-flow diagram does NOT illustrate:
A) growing income inequality.
B) flows of money.
C) flows of goods and services.
D) the purchase and sale of factors of production.

Question

Quizplus · Accepted Answer

The circular-flow diagram illustrates the flow of goods and services, the purchase and sale of factors of production, and the flows of money. However, it does not illustrate growing income inequality.

In the US Economy, the Circular-Flow Diagram Does NOT Illustrate